[q3k]

> Fraud yes, because they're underprovisioned if everyone asks for 1 Gb

All residential ISPs overprovision [1] at some point or another - be it at the acccess level (as with shared mediums like DOCSIS and GPON), distribution/aggregation (metro Ethernet switch and (V)DSL DSLAM uplinks) or at peering/upstream level (always).

You cannot expect to have non-overprovisioned 1Gbps at $60/mo, when global transit is currently around $0.6/Mbps/mo. Typical overprovisioning levels range from 1:8 to 1:16.

[1] - From the point of view of offered speeds vs. underprovisioning infrastructure, as you put it.

EDIT: corrected that DSL is not shared medium

[guan]

There is a neighborhood community ISP in Copenhagen called Bryggenet. They used to make it very clear how much overprovisioning was going on, and have two different options each subscriber could pick with different levels of overprovisioning. I understand from some people who were involved that it caused some initial confusion and complaints, especially when comparing to advertised speeds of commercial offerings, but people understood eventually.

They now seem to have moved away from that model, based on a quick look at their website.

https://en.wikipedia.org/wiki/Bryggenet

[josh2600]

GPON is the least over provisioned of these, but it is definitely overprovisioned.

DSL is the worst. Local VRADs just get slammed, particularly in areas with long connection runs.

[iptrans]

$0.6/Mbps/month is a bit on the high side for IP transit at scale.

You can buy IP transit for under 10 cents per Mbps at well connected datcenters. Additionally, any ISP with peering at an Internet exchange will have a lower blended costs as a lot of content can be accessed over settlement free peering and local CDN nodes.